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Americans pay just 10 cents of every disposable dollar for groceries, the lowest price of any country in the world. America’s farmers and ranchers provide the safest, most abundant, most affordable food supply in the world. It is a fantastic bargain. It is because of this safety net that they are able to continue producing. The cost for this safety net for farmers and ranchers is only 14 percent of the farm bill, or 0.28 percent of the total federal budget.

According to projections from the Congressional Budget Office for the years 2010 to 2020, farm bill programs will account for about $1.1 trillion of federal spending. (This includes nutrition and conservation programs.)Only 14 % of the total Farm Bill spending – $150.2 billion – will be spent on farm income stabilization efforts. Of this, about $49 billion will be spent on direct payments; $5.5 billion on countercyclical payments; $3.2 billion to the new Average Crop Revenue Election (ACRE) program; and $1.7 billion to marketing loan benefits. Crop insurance programs were slated to receive $82.8 billion, although after the recent issuance of the 2011 Standard Reinsurance Agreement, this number will be $4-$6 billion smaller.

The Congressional Budget Office projects that total federal spending over the next 10 years will be $44.3 Trillion. That includes spending on defense, social security, medicaid, foreign aid, and everything else. The Farm Bill is projected to account for 2.2% of that total, or about $970 billion. For the sake of comparison, this chart is based on the version of the bill that was passed by the Senate in June. On the bigger pie chart, you can see how that Farm Bill spending is divided. Nearly 80 percent goes to nutrition programs, such as the Supplemental Nutrition Assistance Program. Only about 15 percent goes to traditional farm safety net programs, and 6 percent goes to conservation. All other farm bill programs have outlays that account for $4.5 billion in outlays over ten years.

The farm bill expired on September 30, 2012. The date is important, because it marks the end of the effective time frame of the bill passed in 2008. However, some programs continue beyond the expiration date because of the way they are written into law. These include crop insurance, the SNAP program, and several others as seen on the left. The Conservation Reserve Program, for example, will remain in effect but new contracts or sign-ups will not be allowed.However, there are several commodity programs, such as direct and countercyclical payments, ACRE, and dairy supports like MILC, that will wind down after September 30. If the previous farm bill is not extended or a new bill is not passed, commodity support programs based on a concept known as “parity” will kick in, which would mean high support prices for many crops but also high costs to the government.Also, September 30 marked the end of baseline funding for 37 programs which were part of the 2008 farm bill. This includes: Beginning Farmer and Rancher DevelopmentHealthy Forests Reserve ProgramBiobased Market ProgramBiorefinery AssistanceRepowering AssistanceBioenergy Program for Advanced BiofuelsBiodiesel Fuel Education ProgramRural Energy for America (REAP)Market Loss Assistance for Asparagus ProducersNational Sheep Industry Improvement CenterSurvey of Foods Purchased by School Food AuthoritiesAssistance for Community Food Projects: Healthy Urban Food Enterprise Development CenterRural Microentrepreneur Assistance ProgramFunding of Pending Rural Development Loan and Grant ApplicationsOrganic Agriculture Research and Extension InitiativesSURE and other disaster programsOutreach and Technical Assistance for Socially Disadvantaged FarmersValue-Added Agricultural Market Development Program GrantsOutreach and Technical Assistance for Socially Disadvantaged Farmers and RanchersWetlands Reserve ProgramGrassland Reserve ProgramVoluntary Public Access and Habitat Incentive ProgramSmall Watershed Rehabilitation ProgramDesert Terminal Lakes ProgramMcGovern-Dole International Food for Education and Child Nutrition ProgramLocal and Regional Food Aid Procurement ProjectsPilot projects to evaluate health and nutrition promotion in the supplemental nutrition assistance programStudy on Comparable Access to Supplemental Nutrition Assistance for Puerto RicoWhole Grain Products for school lunches and breakfastsBiomass Research and DevelopmentBiomass Crop Assistance ProgramFarmers’ Market Promotion ProgramNational Clean Plant NetworkNational Organic Certification Cost-SharingOrganic Production and Market Data InitiativesDetermination on Merits of Pigford ClaimsSpecialty Crop Research Initiative

The farm bill expired on September 30, 2012. The date is important, because it marks the end of the effective time frame of the bill passed in 2008. However, some programs continue beyond the expiration date because of the way they are written into law. These include crop insurance, the SNAP program, and several others as seen on the left. The Conservation Reserve Program, for example, will remain in effect but new contracts or sign-ups will not be allowed.However, there are several commodity programs, such as direct and countercyclical payments, ACRE, and dairy supports like MILC, that will wind down after September 30. If the previous farm bill is not extended or a new bill is not passed, commodity support programs based on a concept known as “parity” will kick in, which would mean high support prices for many crops but also high costs to the government.Also, September 30 marked the end of baseline funding for 37 programs which were part of the 2008 farm bill. This includes: Beginning Farmer and Rancher DevelopmentHealthy Forests Reserve ProgramBiobased Market ProgramBiorefinery AssistanceRepowering AssistanceBioenergy Program for Advanced BiofuelsBiodiesel Fuel Education ProgramRural Energy for America (REAP)Market Loss Assistance for Asparagus ProducersNational Sheep Industry Improvement CenterSurvey of Foods Purchased by School Food AuthoritiesAssistance for Community Food Projects: Healthy Urban Food Enterprise Development CenterRural Microentrepreneur Assistance ProgramFunding of Pending Rural Development Loan and Grant ApplicationsOrganic Agriculture Research and Extension InitiativesSURE and other disaster programsOutreach and Technical Assistance for Socially Disadvantaged FarmersValue-Added Agricultural Market Development Program GrantsOutreach and Technical Assistance for Socially Disadvantaged Farmers and RanchersWetlands Reserve ProgramGrassland Reserve ProgramVoluntary Public Access and Habitat Incentive ProgramSmall Watershed Rehabilitation ProgramDesert Terminal Lakes ProgramMcGovern-Dole International Food for Education and Child Nutrition ProgramLocal and Regional Food Aid Procurement ProjectsPilot projects to evaluate health and nutrition promotion in the supplemental nutrition assistance programStudy on Comparable Access to Supplemental Nutrition Assistance for Puerto RicoWhole Grain Products for school lunches and breakfastsBiomass Research and DevelopmentBiomass Crop Assistance ProgramFarmers’ Market Promotion ProgramNational Clean Plant NetworkNational Organic Certification Cost-SharingOrganic Production and Market Data InitiativesDetermination on Merits of Pigford ClaimsSpecialty Crop Research Initiative

The main reason that the farm bill hasn’t passed is because of Republican leadership in the House of Representatives. It is widely believed that there is a divide among Republicans, as many newly-elected members would very much like to cut as much as possible from all programs, especially nutrition spending, which puts them at odds with those who want to pass a bill that is responsible and can be compromised with the Senate version. It is worth noting that Speaker Boehner has never supported a Farm Bill.Ranking Member of the House Ag Committee, Collin Peterson,said in September that there were enough votes to pass the bill, but Republican leadership didn’t want to have a internal party fight on the floor of the House.Here’s an example of the disagreement of the level of cuts to nutrition:Senate SNAP cuts = $4 billionHouse Ag Committee SNAP cuts = $16 billion“Ryan Budget” SNAP cuts = $134 billion

In terms of spending, the House bill includes much higher cuts than the Senate version. The House bill cuts $35 billion while the Senate bill cuts $23 billion. Of particular note, the House bill cuts $16 billion from nutrition programs while the Senate bill only cuts $4 billion.

There are two versions of the farm bill currently in play. Looking at a comparison of the Senate passed bill and the bill passed out of the House Agriculture Committee, there are several key differences:The Senate bill cuts $23 billion while the House bill cuts $35 billionThe Senate bill Includes farm-level revenue coverage option while the House bill does notThe House bill includes reasonable levels of protection against long-term price collapse and the Senate bill does notThe Senate bill includes roughly $800 million in mandatory funding for energy programs while the House bill zeroes out fundingThe Senate bill tightens payment limits while the House will doesn’t change themNFU would like to see a blend of the Senate and House safety net title

Conservation programs are wildly popular and the demand for the programs continues to grow. They represent an opportunity to continue providing farmers and ranchers with a variety of tools to be good stewards of the environment. Current programs extended in both bills include the Environmental Quality Incentive Program, Conservation Stewardship Program, and the Conservation Reserve Program. The Senate bill includes a sodsaver provision and reattaches conservation compliance to crop insurance. The House bill includes neither.The energy title creates an opportunity for farmers and ranchers to earn an additional revenue stream, creates jobs in rural America and enhances energy security. Both the House and the Senate bills reauthorizes the Energy Title but only the Senate bill provides mandatory funding.

Despite the differences between the two versions of the legislation, there is a good deal of common ground.Direct and countercyclical payments, ACRE, and SURE are eliminated and are replaced by more defensible, need-based programs that help farmers survive difficult times.In both bills, crop insurance becomes the largest part of the farm safety net.Conservation interests reached a general consensus compromise and agreed to a streamlined set of programs. Dairy programs are based on the National Milk Producers Federation’s “Foundation for the Future” and will shift to margin insurance and weak supply management.The no-cost sugar program is extended in both bills.

This chart shows a comparison between the existing target prices for various commodities as well as the House PLC target prices. The Price Loss Coverage safety net option in the House Farm Bill increases target prices to levels that better reflect the realities of today’s market. It also protects against long-term price collapses, as other programs like RLC and ARC are based on average prices, not a fixed figure.The payment rate is also explained, as the program will make up some – but not all – of the difference between actual and target prices. The existing Upland Cotton program is replaced by a stand-alone, cotton-only program called STAX, or Stacked Income Protection Program.

13.
The extension really wasn’t so much an “extension” as a rewrite of the Farm Bill with no debate •Extended to the end of September •Preserved Direct Payments •Dairy pretty well got screwed •Livestock indemnity payments gone, not funded•Livestock forage disaster program gone, not funded •Livestock emergency assistance gone, not funded •Crop disaster gone.•Beginning Farmer Program gone. (Extended but not funded)

15.
A couple of “okay” things in the extension •Crop Insurance still there •With the Direct Payments still fully funded the budget baseline is protected for the next round of negotiations on the farm bill

31.
HB 2575 Immigrant ID bill. This is a weirdone, it will allow illegal immigrants living herefor 5 years, or employed by a multi-statecompany, to legally work in Kansas and to applyfor a Kansas driver’s license. I think it iscommendable that the state is finallyrecognizing this very large hidden part of oursociety but am disappointed that itintentionally does not make this a step towardcitizenship. Long time opponents, corporate Agand social welfare groups, are allied in supportof this bill. Labor unions are opposed.